SERVICE TAX UPDATE
Clarification reg. conducting of audit by service tax department along with CA or CMA
Circular No. 181/7/2014 -ST dated 10-12-2014 – Notification No. 23/2014-service taxdated 05-12-2014
The CBEC has issued above Circular & Notification to neutralise the judgment of Delhi High Court in case of Travelite (India) vs. UOI & Others 2014 (35) S.T.R. 653 (Del.) which considered the service tax audit by departmental officers pursuant to Rule 5A as ultra vires the service tax law.
The above Notification had substituted Rule 5A(2) of the Service Tax Rules, thereby nominating a Chartered Accountant or a Cost Accountant along with an officer authorised by the Commissioner or the Audit Party deputed by the Commissioner or CAG to conduct Service Tax Audit.
The above Circular had also clarified the power of the departmental officers to conduct Service Tax Audit and had clarified that Rule 5A(2) of the Service Tax Rules, interalia, provides for scrutiny of records by a service tax auditor and such scrutiny essentially constitutes Audit.
It has been further clarified that Rule 5A(2) of the Service Tax Rules has appropriate statutory backing for conducting Service Tax Audit by the Departmental officers by virtue of section 94(2)(k) of the Finance Act as amended by Section 114(J) of the Finance Act, 2014 w.e.f. 6th August, 2014 and the expression “verified” used in Section 94(2) (k) of the Finance Act is of wide import and would include within its scope, Audit by the Departmental officers.
MVAT UPDATE
Grant of exemption from filing returns-withdrawal of concession- dated 25-11-2014 Trade Circular 20T of 2014 -Central Sales Tax Act, 1956
Dealer effecting interstate sales, branch transfer, sales outside the State, export sales or deemed export sales and sales in the course of import have now compulsorily to file CST return. Applicable to the returns starting for the period from 01-10-2014 otherwise will be treated as defaulter under the CST Act.
Trade Circular 21T of 2014 Physical submission of Audit Report in Form 704 for the financial year 2013-14 Dated 20-12-2014
Last date for electronic uploading MVAT Audit Report in Form 704 for the period 2013-14 is 15.1.2015. After uploading MVAT Audit Form 704 physical submission of two documents is required :
1) “The Statement of Submission of Audit Report” as per the format given in notification duly certified by dealer with stamp, seal & signature with date and
2) The copy of acknowledgment generated after uploading Form 704 duly certified by auditor & dealer with stamp, seal & signature with date.
Both the documents should be submitted before 27-01- 2015.
In case of acceptance of recommendation given by the auditor the information regarding payment of tax, interest and revised return should be given online when the facility for Computer Desk Audit for the year 2013-14 is made available. No physical submission of challans of payments at the time of above submission is required.
